Fund Overview

Climate investment represents a significant structural shift, currently in the early stages of its growth curve, with many climate technologies still in the initial adoption phase offering substantial growth potential. The Fund aims to build a high-quality portfolio of global growth equities that enable or benefit from the transition towards decarbonisation.

The strategy targets listed companies across various industries and regions, focusing on those with earnings prospects set to improve through increased investments in decarbonisation. This is a concentrated, long-only portfolio comprising 15 to 25 companies.

Leveraging an investment process that has been refined over 15 years, the approach focuses on identifying sustainable growth trends that are underappreciated or mispriced, selecting the resulting winners from the stock universe.

Munro has identified the following key sub-themes within decarbonisation:

• Clean Energy: Companies benefiting from demand for carbon-free and renewable energy sources, including wind, solar, nuclear, renewable diesel and electrical grid equipment.
• Clean Transport: Companies supporting the growth of electric vehicles, battery technology, and other low-carbon transportation methods.
• Energy Efficiency: Companies offering energy-efficient solutions such as insulation, electrical switches, lighting, metering, and other related technologies.
• Circular Economy: Companies positioned to benefit from advancements in recycling, alternative packaging, waste and wastewater management, agricultural technologies, and other resource-conserving services.

These sub-themes are dedicated to decarbonisation but may evolve based on the investment team’s qualitative and quantitative assessments.